Medallion Metals has confirmed and expanded high-grade gold mineralisation at its Lounge Lizard deposit in Western Australia, validating historical data and identifying new lode structures ahead of a major drilling campaign and resource estimate.
- High-grade gold intercepts extend known mineralisation at Lounge Lizard
- New hangingwall lode discovered at McMahon’s Pit
- Historical diamond core re-assays average 20% higher grades
- ~6,700m Diamond and RC drilling program to start August 2026
- Initial Mineral Resource Estimate targeted for Q3 2026
Significant Gold Intercepts Validate and Expand Lounge Lizard Deposit
Medallion Metals Limited (ASX:MM8) has delivered encouraging drill results from its first exploration programme at the northern end of the Lounge Lizard deposit, part of the Forrestania Gold Project (FGP) in Western Australia. A seven-hole, 1,077m Slimline Reverse Circulation (RC) drilling campaign at McMahon’s Pit has not only confirmed previously reported high-grade gold mineralisation but also extended the known zones down dip and plunge, while unveiling a new hangingwall lode that remains open for further exploration.
Key intercepts include 5m at 5.80 g/t Au from 106m, including 3m at 8.83 g/t Au, and 3m at 3.61 g/t Au from 112m within the newly identified hangingwall lode. These results reinforce the deposit’s potential to contribute additional high-grade ounces to Medallion’s growing resource base.
Historical Data Resampling Boosts Confidence in Mineralisation
Complementing the recent drilling, Medallion has undertaken a re-assay programme of historical diamond core drilled between 1988 and 1990 beneath the Lounge Lizard Pit. The resampling effort, involving 78 quarter-core samples analysed by 50g fire assay, returned grades averaging approximately 20% higher than the original assays across multiple lodes. This uplift in grade provides a stronger foundation for the upcoming Mineral Resource Estimate (MRE) and underscores the robustness of the historical dataset.
While some intervals showed variability due to sample conditions such as broken core, the overall validation supports the integrity of the extensive Lounge Lizard dataset and bodes well for resource confidence.
Major Drilling Campaign and Resource Milestone Scheduled
Building on this momentum, Medallion plans to commence a substantial ~6,700m combined Diamond and RC drilling programme later in August 2026. The campaign targets three lode positions beneath the Lounge Lizard Pit, aiming to confirm and extend known mineralisation. Follow-up RC drilling is also slated for both Lounge Lizard and the nearby Teddy Bear prospect, including further work at McMahon’s.
The company aims to deliver an initial Mineral Resource Estimate by Q3 2026, a critical step towards advancing the deposit towards production. Parallel preliminary mining studies are underway to evaluate both open pit and underground development scenarios and the feasibility of supplying additional feed to the Cosmic Boy Concentrator (CBC), located 14km away via a private haul road.
Strategic Importance within Forrestania Gold Project
Medallion’s Managing Director Paul Bennett highlighted the significance of these results, stating that the drilling “provides further validation of the opportunity we see at Lounge Lizard” and marks the start of a larger programme to grow the company’s resource inventory and support a longer-term production profile. This drilling campaign complements Medallion’s broader strategy at Forrestania, which recently accelerated with its Early Production Strategy and ongoing development at the Ravensthorpe Gold Project.
The McMahon’s lode is structurally complex, hosted along a contact between mafic and ultramafic rocks with mineralisation concentrated in a plunging shoot over roughly 100m of strike. The discovery of a new hangingwall lode adds an unexpected dimension to the deposit’s potential and opens new avenues for resource expansion.
Bottom Line?
Medallion’s Lounge Lizard drilling results and historical data validation strengthen the deposit’s profile ahead of a major resource update and mining studies, but the true scale and economic viability will hinge on the upcoming 6,700m drilling programme and resource estimate.
Questions in the middle?
- How will the new hangingwall lode impact the overall resource size and mining strategy at Lounge Lizard?
- What insights will the forthcoming Mineral Resource Estimate provide regarding grade continuity and true widths?
- How will preliminary mining studies balance open pit versus underground development options for optimal project economics?